Wallenius

Wilhelmsen
Logistics
Delivering a
Sustainable
Future

Environmental Sustainability Report

Delivering
Value
Highlights
1. In 2012, WWL achieved
a 2% reduction in relative
CO2 emissions (grams per
tonne km), compared to 2011.
2. 186,500 tonnes of sulphur
emissions savings over 12
years as a result of WWL’s
global low sulphur fuel policy.
3. Launch of WWL’s proactive
four stream approach for
sulphur regulation compliance.
Charting new waters
At Wallenius Wilhelmsen Logistics, we believe that the best way to reduce
environmental risk and cost is to be an environmental frontrunner. To remain true to this
course, our daily activities are guided by a 5-part strategic environmental framework:
• We focus on high impact changes.
• We hold ourselves accountable and transparent in our environmental commitments.
• We exceed our responsibilities for environmental performance.
• We invest in future technologies.
• We cultivate partnership with stakeholders to develop sustainable solutions.
Committed to the U.N. Global Compact
We are committed to the notion that a sustainable supply chain means minimal
environmental impacts and risks, and that progress and accountability require that
we declare our objectives and measure our performance. This report details our
results over the past year, and declares our commitment to the ten principles of
the U.N. Global Compact.
Stepping up to sustainability
With the long foreseen stepping up of global ECA regulations limiting the sulphur
emissions from commercial vessels, much of the 350 million tons of ordinary bunker
consumed every year by the shipping industry will have to be either replaced with
other fuels or used in conjunction with abatement systems.
The potential solutions available are still evolving, which presents uncertainty and risk
to the industry. We naturally seek to minimize these impacts. By exploring a number
of solutions we make sure that in the future we have access to adequate amounts of
fuel or other solutions to be compliant with the regulations.
There will be no one solution for the future; technologies develop and mature in a fluid
way, availability and prices of fuels will fluctuate, regulatory limits will differ around the
world, and our fleet will always contain several generations of vessels. Therefore, to
ensure that we can always find the most cost effective solution for our customers,
WWL is working along four different streams and leveraging our 9-year experience using
low-sulphur bunker across the globe to find the most sustainable compliance solution.
While this work will help us identify the most cost effective route to compliance, it does
not address the commercial risk that exists from today’s generally weak enforcement.
Without a meaningful level of enforcement of regulations, including significant disincentives,
the unscrupulous operator will get away with using cheaper, dirty fuel, and gain an advan-
tage over more honourable competitors in the process. In this regard the authorities, as
well as ship operators, have their work cut out for them.
Arild B. Iversen, CEO
Wallenius Wilhelmsen Logistics
Delivering
Results
As an environmental frontrunner, we believe in setting goals, tracking performance and
delivering results. Reducing emissions from our ocean fleet is the single greatest way to
improve our environmental performance today. To achieve this we operate our vessels
with low sulphur fuel at sea, and invest in advanced technology that improves the fuel-
efficiency and emissions performance of our fleet.
We also believe in accountability. We use state of the art systems to measure the
performance of our fleet, and publicly report the externally verified results.

CO2 Emissions in grams/tonne km 45

WWL’s objective is to reduce our relative CO2
emissions 30% by 2015 compared to 2005. 40

In 2012, relative CO2 emissions were reduced 35

by 2% compared to 2011 as a result of improved
utilization, energy efficiency and new buildings 30
entering the fleet.
25
2005 2006 2007 2008 2009 2010 2011 2012

CO2 Emissions in total tonne

3000
Total tonnes of CO2 emissions increased by CO2 emissions in thousands of tonnes
13% based on increased business volume in
2500
2012 versus 2011.

2000

1500
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Average Global Sulphur Content 3.0 %

For the 9th year in a row, we have maintained
our 1.5% global fleet average sulphur policy. 2.5 %
WWL’s target of 1.5%
2.0 %

1.5 %

1.0 %
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

195000
Sulphur Emissions Savings 180000
Compared to industry average sulphur in fuel 165000
Sulphur Emissions Accumulated savings since 2001 150000
Our 1.5% global low sulphur fuel policy has saved 135000
186,500 tonnes of sulphur from being emitted over 120000
the last 12 years. 105000
90000
75000
60000
45000
30000
15000
0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

NOX Emissions in grams/kilowatt 20

hour 19
Average NOx emissions in g/kWh were reduced 18
by 2% as a result of the rejuvenation of the fleet. 17
Newer vessels with more modern engines emit
less NOx than older vessels. 16
15
14
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Delivering Working towards a
sustainable solution
Worldwide

Sulphur Regulations A four-stream approach

<0.5% Bunker Oil

Determine if a viable supply of <0.5% bunker
oil can become available

WWL believes that <0.5% low sulphur bunker oil could

become a viable long-term compliance solution. As an
upstream solution, the sulphur is taken care of at source,
where it is more easily managed. Upstream solutions
also virtually guarantee compliance.

Distillates
Examine medium to long-term pricing and availability

Another route to compliance would be to switch to a

distillate fuel, such as Marine Gas Oil (MGO).
Using distillate requires some onboard adjustments but
these are relatively minor. The bigger issue concerns the medium
to long term pricing and availability of this type of fuel.
• Global sulphur regulations pose a
significant cost and compliance challenge
to the industry. WWL is exploring
several avenues in order to find the most
sustainable solutions for our customers.
• Pricing and availability of low sulphur fuels
or alternative energy sources is difficult
to predict. A broad approach, evaluating
several options, will help us to mitigate the
risks arising from volatile costs as well as
supply uncertainty.
• Technology in these areas is evolving at
various paces, and working on several
fronts in parallel will enable us to deploy
solutions as they mature.
• The WWL fleet will always contain
different generations of vessels, with
varying capabilities for implementing
solutions from the four different streams.
We need to look at what the right “mix” of
solutions should be.
• There are several other environmental
risks and regulations that need to be
managed in coordination with the sulphur
issue. We need to ensure we are not
creating a new problem through our
solution.

Other Energy Sources

Decouple from bunker fuels

Alternative energy sources will be explored through research

and development projects. WWL is working together with our
owners to explore the possibilities presented by alternatives
such as LNG, biodiesel, solar power and others.
The objective is to develop a potential competitive advantage for
WWL in terms of price stability, availability and the possibility
of decoupling from fossil fuels in the future.

Exhaust Gas Cleaning Systems

Install and run pilot project to gain early experience
Work with stakeholders in global operating environment
to evaluate risks and costs
Scrubbers (abatement systems) are a technical approach to compliance. They work by removing
sulphur from the vessel’s exhaust gasses. There is no operational experience with the size and type
of installation required for our type of vessels. So in line with our continuous effort to explore new
technology, we are conducting a pilot project over 2012-2014 to evaluate the design, technical,
operational, safety, environmental and regulatory matters related to scrubber installations.
Delivering
at Sea

Energy Efficiency Competition

Under the direction of the Energy
Efficiency Working Group, the
competition encourages all
superintendents, trade vessel operators,
seafarers and land based personnel on
new building site offices to submit their
ideas on how a vessel can save energy
and reduce fuel consumption.
This year the competition attracted
36 persons/teams to submit 43 entries
in total.
Grand Prize Winners
• MV Tysla: Optimizing the output of
the steam turbo generator.
• MV Isolde & MV Toscana: Installing
motions sensors on light fixtures in
accommodation and in cargo holds.
• MV Isolde: Natural air supply to main
engine turbocharger.

Since its creation in 2008, WWL’s Orcelle that positively impact oceans The Solution Exchange delegates also
Award has supported clean-tech innovators and coasts. select the worthy winners of the $100,000
seeking to make shipping and logistics Each year, the Ocean Exchange hosts the Gulfstream Navigator Award and the
more sustainable. Since 2011, WWL Solutions Exchange, held over two days in $100,000 Orcelle Award from among
extended the reach of the initiative throughSeptember in Savannah, Georgia, USA. some of the world’s most promising
its partnership with the Ocean Exchange™ This annual event is a forum for dialogue sustainable maritime innovations.
– an organisation dedicated to promoting amongst private, public, entrepreneurial
cross-industry environmental innovation. and scientific groups focusing on innovative
The Ocean Exchange™ unites organisations ideas and solutions for cleaning and
worldwide to distribute and adopt solutions protecting the ocean.

Orcelle Award: Nonox Winners

The Orcelle Award is given each year to an
innovator working to develop commercially
viable maritime solutions for a zero-emission
future. In 2012 the delegates at the Ocean
Exchange, bestowed the award on Nonox’s
emulsion combustion systems, submitted
by Erik Cottell and Wes Pence.
Fossil fuel emissions contribute to global
warming and are a root cause of many
health problems. These emissions can
be reduced by improving the combustion
process through the use of water-in-oil
emulsified fuel.
The Nonox emulsion combustion unit
(ECU) is a complete emulsion fuel system.
It produces an on-the-spot, water-in-oil
emulsion fuel that reduces NOx, black
carbon/soot and other air pollutants,
with­out the use of additives.
The team has done an impressive job in
developing this technology. We hope that
the Orcelle Award will make it possible for
them to bring this product to market, and
look forward to supporting Nonox on this
journey.

The Nonox Emulsion Combustion System is an effective

solution that can reduce the emission of harmful
substances to the air, both at sea and on land.
Christopher Connor, Deputy CEO and CCO of Wallenius Wilhelmsen Logistics congratulates the winners.
Delivering
on Land

Castor Green
The Castor Green Standard is a tangible
and measurable tool allowing WWL
operated land based sites to move closer to
the Castor Green 2020 vision. The Castor
Green Standard operates with a scale
(green, greener, greenest, castor green)
based upon the four castor green areas:
• Green space for employees
• Energy Consumption
- Electricity – kilowatt hours (kWh)
- Fuel Consumption – gigajoule (GJ)
Each area is allocated a set amount
of points, based either on percentage
improvement from the 2012 baseline, or
number of best practices implemented.
The scoring allows sites to track where they
are on the Castor Green scale whilst being
able to easily track their improvement within
More
the areas. renewable
energy
Green part of
site area

- Energy Consumption covered by

renewable sources
• Water consumption
- Reduction of water consumption
- Water consumption covered by rain
• Waste – waste to landfill reduction

Waste Reduced Reduced fuel Reduced

management freshwater consumption electricity
consumption consumption

WWL Way of Working

Best Practices are at the foundation of the
Castor Green Standard. A best practice is a
practical implementation that improves one
of the areas in the Castor Green Standard.
WWL has a portfolio of best practices
covering all areas, the majority derived from
successful implementations by employees at
WWL sites across the world.
Each best practice can be considered as The Castor Green Standard operates with
a manual for implementation that will have a reward programme in which sites receive
a positive environmental impact on the site recognition when they:
and includes: • Move one area (green space, energy,
• Description of best practice and area of water or waste) to the next level on the
improvement Castor Green Scale.
• Scope • Move the whole site to the next level of
• Impacts (positive and negative) the Castor Green Scale
• Cost and ROI
• References
• Top Tips!
• Images
• Contact information for the site / people
responsible for that best practice
Delivering
Innovative Solutions

About WWL
5.1 million units transported 2012; 1.9 million by
sea and 3.2 million inland
12 terminals worldwide handled 2 million units
58 technical services sites processed 5.7 million
automotive and rolling equipment units
61 modern car carriers and RoRo vessels
servicing 10 major trades
5700 employees worldwide
Owned by Wallenius Lines of Sweden and
Wilh. Wilhelmsen of Norway
Main Offices
Global Headquarters, Lysaker, Norway
Region Europe, Stockholm, Sweden
Region Americas, Woodcliff Lake, NJ, USA
Region Asia, Tokyo, Japan
Region Oceania, Sydney, Australia

Recognition
John Deere: WWL awarded ‘Partner’ status in
Deere’s Achievement Excellence program.
Caterpillar in-plant business in Chennai
recognized by CAT as best in class.
M/V Tønsberg awarded the “Ship of the Year”
by the Japanese Society of Naval Architects and
Ocean Engineers
Project Cargo Award; Lloyds List Australian
Shipping and Maritime Industry Award
“Best Service Logistics Supplier 2012” for CNH
Europe.
More information
For additional information about WWL’s
environmental policies and framework, contact
Information integrity
Wallenius Wilhelmsen Logistics believes
that this report accurately represents
our company’s environmental activities
beginning January 1, 2012, and ending
December 31, 2012.
Information verification
Det Norske Veritas AS (DNV) has
conducted a limited assurance third-party
verification of the direct greenhouse gas
(GHG) emissions and the grams C02 per
tonne kilometer performance from WWL’s
Ocean Transportation in 2012.
Printed on recycled paper 100% post consumer waste with soy inks.

Roger Strevens, Vice President Environment,

by email: roger.strevens@2wglobal.com.
During the verification. nothing has come to
our attention that causes us to believe that
the GHG emissions set out in the WWL
Ocean Transportation GHG Inventory for
2012 and published in the WWL’s 2012
Environmental Sustainability Report are
not fairly stated.

This is our Communication on Progress

in implementing the principles of the To stay updated on WWL Environment
United Nations Global Compact. work, follow us on Facebook and Twitter.
We welcome feedback on its contents.